Student body organizations raise money by a variety of method to help fund their activities. The ways in which this is accomplished are only limited by the creativity of the students and their advisor. Accordingly it is critical that the sponsor or advisor of each activity be accountable for the fundraisers.

There are 5 types of fund raising opportunities:

1 Sales for commissions

2 Sales of service

3 Sales of manufactured items

4 Sale of purchased items

5 Raffles

All fundraisers must have a budget and be pre-approved by the building principal. The reason for the budget is to identify the type of fundraiser, the length of time the fundraiser will last, and potential profitability of the fund raiser.

11.1 Sale for Commissions

1 1 Allow the school to raise funds with out the risk of losing inventory. The students take the orders and collect the money, then deliver the items themselves or they may be shipped directly (i.e.: the sale of magazines).

2 Make sure that:

You have a signed contract that details the commission you will receive and how it is calculated.

How the deliveries will be made and when.

The terms of the payments.

How the fund will be collected and who is responsible for NSF check

Who is responsible for defective products and how the returns will be handled

11.2 Sales of Service

1 Allow schools to raise funds with very little out of pocket expense and lots of student manpower (i.e.: car wash).

2 Make sure that:

The activity is clearly identified as an ASB activity

The activity is infrequent

The activity does not conflict with local laws and regulations

11.3 Sales of manufactured items

1 1 Students often realize that they can develop a product and sell them at a very profitable margin. A budget for this type of fundraiser is critical to identify the cost to produce the product and to determine the profit margin you expect to receive (i.e.: sale of flowers and vegetables from the horticulture class).

2 Make sure that:

You identify the cost to produce the manufactured item

You establish a selling price that is marketable and profitable

Provide for waste, defective product and returns

Provide a process for collecting and depositing sales

Provide a final accounting for profit or loss

11.4 Sale of Purchased Items

1 1 This is probably the most used option of fund raising used by clubs and activities. Many companies specialize in providing products specifically for this purpose. In all cases, the cost and expected revenues from the sales can be easily identified. Both a budget and inventory control is critical to avoid significant loss of revenues and profits.

2 Make sure that:

The product chosen is marketable

The product has a good profit margin and is reasonably priced to the customer

You have the right to return any unused product, ordering too much inventory will have a direct effect on your profits

You have safeguards from spoilage and theft

You know who is responsible for paying any sales taxes

You issue inventory to the student in an organized and accountable manner

Promote and schedule your fundraiser so it does not conflict with others

You do a complete accounting after the fund raiser to confirm your profits, identify your inventory losses, and evaluate the fund raiser to see if it should be done again in the future

11.5 Raffles

1 1 Can be very profitable when used in the correct environment. If these are not handled properly they can be more of a problem than a profit.

2 Make sure that:

You contact state or local authorities before beginning because the frequency, ticket prices, and prizes offered may be restricted or regulated

You attempt to get most, if not all, of your items donated before you begin

You clearly state the rules on the raffle ticket and indicate if you must be in attendance to win

You publish donor information at the front door

You use pre-numbered tickets and make sure you reconcile the tickets before you draw the raffle